Cloquet schools: Communication error leads to lost funds

With school set to start Wednesday, Sept. 4 in Cloquet, superintendent Michael Cary shared good and bad news with the board on Monday.

The good news? The district is almost fully staffed, with the exception of a couple of last-minute resignations. Also, 22nd Street should be open to traffic from Washington Avenue to Doddridge Avenue by the start of school, although workers will be striping and doing other work between 9 a.m. and 2 p.m. on school days for a while.

The bad news? The district could face a six-digit shortfall this year, following a Minnesota Department of Education audit of students who qualify for free and reduced-price lunch which revealed a procedural flaw in Cloquet.

Cary explained the district has been sending free and reduced-price numbers to the state in October, and should have been sending revised numbers in December. That’s necessary because the earlier numbers automatically include children who signed up the previous year, whether or not their families have signed up in the current year or not.

The revised numbers would show whether those kids actually registered and qualified in the current year.

“Food service was updating those numbers but they weren’t sharing them with our MARS coordinator,” Cary said. Thus, the numbers weren’t being sent, and Cloquet has been overestimating the number of students qualifying for free and reduced lunch, a key metric that also determines federal and state aid for additional programs, including Title I programs.

There will be no punishment for Cloquet, except that they must correct their numbers moving forward, which will also reduce other program aid.

“What that means is we’re expecting to see a reduction in our compensatory education aid for this year, which was built into part of our projected budget plan for this coming year,” Cary said, noting that they’re “anticipating the lower end of six figures.”

“It won’t break the district in any way, but at the same time it’s not going to be a small number.”

Cary said the error was in communication, and that’s been fixed and won’t happen again.

“With this ill-conceived free lunch program for anybody, including millionaires’ kids, did that make it less of a motivation for people to report that would normally qualify for free and reduced lunch?” board member Ken Scarbrough asked.

Cary said he didn’t have concrete data for that, but it’s likely. The superintendent also said revenue went down by close to $500,000 during Covid, when lunches were also free to all students.

Since then, Cary said, the state has started automatically certifying any children whose families received food program assistance, such as SNAP.

Cary said administration may have to propose a couple additional cuts in the spring, but he hoped some senior staff retirements and hires of less-expensive replacements would help offset the lost revenue.

Scarbrough stepping down

In other news, board member Ken Scarbrough — and former Cloquet school superintendent — will be stepping down from his board position a couple months early, as he and his wife are moving to Fargo, North Dakota, in October.

Scarbrough’s term was set to end in December. He worked as superintendent for 13 years before retiring in 2018, helping guide the district through the construction of the new middle school in his final years.

He expressed excitement about moving during Monday’s meeting.

CHS teacher disciplined

In response to a public data request from the Pine Knot News, Cloquet school district officials released a disciplinary letter relating to an incident at Cloquet High School toward the end of the previous school year.

English teacher René Montgomery was suspended without pay for five days retroactive to late May and early June after showing up to school May 17 under the influence of alcohol.

The letter, signed by Montgomery and CHS principal Steve Battaglia, noted that any similar occurrence could result in termination of employment. It also noted that “any retaliation towards any of the employees who voiced concern and cooperated in our investigation will not be tolerated” and would also result in further discipline or dismissal.

Montgomery was recognized for 30 years of service with the district in May.